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House Approves Nuclear Tax Credit Bill

Jun 22, 2017

The House has this week passed H.R. 1551, a nuclear tax credit bill. The law would modify the tax credit for electricity production from advanced nuclear power facilities.

Under current law, taxpayers producing electricity at advanced nuclear facilities approved after 1993 and placed into service before Jan. 1, 2021, can receive a tax credit for an eight-year period that is based on the amount of electricity they produce, subject to certain facility-specific and nationwide limits on electricity capacity. The bill would allow entities that have reached their facility-specific limits, and have additional capacity above those limits, to receive an allocation from the unused nationwide limitation amount, thus allowing them to receive additional tax credits.

The nationwide limits on qualifying electricity production would not change. The bill would also allow the additional allocation to apply to advanced facilities placed into service after Dec. 31, 2020.

H.R. 1551 would also allow certain non-profit or governmental entities to transfer a portion or all of their credits to taxable project partners. The treatment of unutilized limitation amounts would be effective upon date of enactment, and the allowed credit transfers would be effective for tax years beginning after the date of enactment.

The House Ways and Means Committee approved the measure on June 15. The bill is sponsored by Reps. Tom Rice, R-S.C., and Earl Blumenauer, D-Ore.

In a June 14 letter to Ways and Means Committee Chairman Kevin Brady, R-Texas, and Rep. Richard Neal, the top Democrat on the committee, the American Public Power Association and four other electric industry groups urged the committee to approve the bill. Joining the Association in signing the letter were the Edison Electric Institute, the Nuclear Energy Institute, the National Rural Electric Cooperative Association, and the Large Public Power Council.

The Trump Administration stated it supports H.R. 1551. "The bill would fulfill the President’s commitment to the continuation of nuclear energy as a major contributor to our Nation’s energy production and security. Nuclear power is critical to the reliability, security, and diversity of our national energy mix," the statement read.